Is man made resources boon or bane? Write an essay.
Answers
Explanation:
More natural resources do not guarantee higher economic growth, shows a National Bureau of Economic Research (NBER) working paper by Achyuta Adhvaryu, assistant professor at the University of Michigan, and co-authors. Africa’s experience shows that resource-rich regions are susceptible to conflicts and hence often experience slower economic growth compared to those not endowed with much resources. The paper finds that conflict in a region is dependent on its own resources and the resources in the surrounding areas with chances of conflict rising with higher inequality. On the other hand, regions where resources are moderately high and conflict is avoided see maximum development.
Cryptocurrencies might find greater acceptance only when credible institutions can guarantee that newer spawns will not erode their value. To illustrate, it took a few big deposit banks to restore public’s trust in money after war-time “debasement" in 17th century Europe, as noted by Isabel Schnabel, professor at the University of Bonn, and Hyun Song Shin of the Bank for International Settlements, in a recent paper. City-states in Europe often debased their currency, i.e. lowered the silver content of their coins, during the Thirty Years’ War (1618-48). This was done to raise the government’s revenue. But people lost faith in coin currency and hyperinflation followed. However, a few banks such as the Bank of Amsterdam (founded in 1609) and the Bank of Hamburg (founded in 1619) issued their own notes which were backed by gold and silver coins. People trusted these banknotes as the quality of underlying gold and silver coins was deemed better than the ones in circulation. Gradually, the arrangement was successful in quelling hyperinflation